david: it's almost 10 a.m. in hong kong and singapore, 11 a.m. tokyo. welcome to bloomberg markets: asia. i am david ingles with yvonne man. yvonne: concerns ease over financial stability, by the fed's dilemma remains in focus, investors waiting in an updated dot plot for tomorrow's call. wall street and u.s. officials discussing a potential intervention at first republic bank that could include government backing. plus, tencent's stocks surged to be tested today by a crucial earnings report. david: we will talk to mcquarrie on that story, whether it is vacation star, whether it moves the needle on earnings guidance for the chinese corporate amidst a global economy that is slowing down, and investors looking to china for that engine of growth.

it takes us into the market positioning ahead of a crucial central-bank decision, because could this be the last one from the fed, if they do deliver on that? and is there wisdom on waiting? can they just revisit that in the next quarter, just given how uncertain and all the moving parts of there are. markets moving up substantially ahead of that fed decision. yvonne: in the heat of the pandemic, we were talking about, does that create panic when they drop those projections, or it provides more clarity than confusion? that is one to watch. and is there anything about qt? if they suggest this is a separate issue, can qt make a rebound in the face of other banks' issues?

i guess they will be fielding a lot of questions about whether san francisco fed, where they were missing on what happened with svb and all of that. i think financial times said, "it is a consequential fed decision." the most we have seen in a while now. some are calling for everything from a pause, to a hike of 25 basis points. no more on the other side saying they are thinking it cut a, pause in qt. still a lot of questions and where the terminal rate is going to be. david: absolutely, to our point earlier, this is one of the meetings, if not the only one, where there is not a lot of conviction about what they will do. it is a reminder that the fed is also not a policymaking body. they are a regulatory body that oversees the banks. how did this happen, and what can they do to pursue their monetary targets, and also keep the financial system stable? yvonne: they have tools that focus on the financial stability things, that there is the

feedback loop as well -- if you continue to hike rates, what are the economic consequences moving forward, as we saw with svb? the treasury markets, it is insane, the whipsaw we are seeing. could we still be seeing some leg up here given what the fed says today? take a look where the positioning is. we have gone from neutral to long. david: yeah. this is from a jp morgan survey of the treasury clients, really important, because of -- the week of the 13th is when the rally took place. the data we have now which is from the week of the 20th data show outright longs on treasuries, the highest since november so this. pivot of lower rates, have we reached closer to the tightening cycle? it shows us how crazy the last 10 days have been.

actual vol, 10-day phone two year futures have surpassed the levels we saw since the gfc. some of these swings and consecutive swings. yvonne: for more on the markets, let's bring in amlo strategist mark cranfield. mark, is it the right call to go long treasuries given there is so much uncertainty about the fed's outlook? mark: if you take a medium-term view, you will be fairly bullish on treasuries, simply because the degree of uncertainty in the banking sector which would translate into uncertainty in the u.s. economy, means that the path of the federal be completely different to what was the last time that they met. they will probably go with a hike today, but it would be surprising if they don't signal a lot of caution in what they see going ahead. that will naturally mean that

their ability to increase rates in the future is much diminished than it was at the start of the year. so that dot plots it is quite possible that they raise rates today, the upper ceiling will be 5%, still below what the medium dot plot was in december. it might signal that they have a bit of wiggle room to do a pause if they see inflation data be more favorable. that definitely makes it easier for them to take a pause when the next meeting is, in may. whatever they do today, there will be a lot of unhappy people. they cannot please everybody. david: today you were writing the blog about the hedge qualities on aussie-yen, one pair we have been focused on, given how quickly the pair has dropped recently.

talked up as about why this is an important currency to watch. mark: if you see asian equities with weakness, it is a micro hedge that people turn to go to, but if you go deeper into it, it has some idiosyncratic reasons for wanting to be short aussie against the yen. the rpa have made it clear that they see a pause as being realistic when they next meet, even more explicit that we are hearing from other central banks. looks like the rate hikes cycle is coming to her leg in australia. that puts it in a more defensive posture. we have some pretty aggressive wage hikes in japan, the biggest in a couple of decades and that is not factored into the urine, partly because the boj -- that is not factored into the yen. we have a new governor and he will clearly come in with a mallet to change monetary starts in april.

put those things together, we could have a divergent monetary policy. it will take a while for the bank of japan to get into tightening mood. that skews aussie-yen towards the downside. yvonne: thank you, mark cranfield with what to watch. wall street leaders and u.s. officials are set to be discussing a potential intervention weight comes to first republic bank could include government backing to help pave the way for a private deal. let's bring in of a bloomberg finance editor joining us from sydney, adam haigh. what do we know about this rescue of first republic bank? adam: we know that it is an incredibly fluid situation still got to be a bit careful of the details, but clearly what is being considered is that you do get some kind of intervention from the government side in the u.s. of course the big issue here is a lot of this data that they bought -- this debt they bought when rates were very low. rates have pushed higher, and that is what has ushered a big

portion of this bank. so it continues to be a fluid situation. we have to watch developments. he just wonder with the timing of this, the federal reserve meeting on wednesday, you wonder if they are trying to get something done or at least firmed up in the early hours so that they can release more information before the fed decision. david: across the atlantic -- this is the ubs and credit suisse tory, but it takes us on shorts. why is ubs trying to unwind the first boston terrier of credit suisse? adam: really, david, this is a story about ubs being in control and having select peak on the best bankers that are available at credit suisse, they want to retain the top talent and they don't want the top talent going out the door on the first boston terrier with credit suisse but already been orchestrated and many months ago.

so what they are trying to do here is to give them the option to be able to take those cap bankers -- around the road from the credit suisse franchise -- in the areas that they need them. particularly interest in the advisory side in the u.s., industries like technology, where we understand they want to increase their headcount. those kinds of areas that they want to beef up. and of course, with them having control at the table now, it allows them to unravel the existing arrangement that had been built up before, but of course lawyers on both sides will have to look at this and see how it can be worked out and whether some agreement can be reached. adam: and we are talking about lawyers here, so that is a low probability. david: adam haigh, thank you. by the way, we have a big interview coming up on thursday, citi ceo jane fraser will be joining us at the economic club

of washington. the first conversation with a major u.s. lender since the financial turmoil began. it starts at 8:00 a.m. if you are watching thursday here in hong kong. yvonne: meantime, let's get you caught up with the first word news of the vonnie quinn in new york. vonnie: that biden's administration is such and available restrictions of the chinese operations of chip makers that get federal funding. . the commerce department will outline the new curbs as it disburses funds. they include a 100 thousand other spending cap on investment in advanced capacity in china, and restrictions on expanding output. the u.s. is reviewing whether the impact on chinese startups on the -- the u.s. is reviewing whether the impact on chinese startups from the fall of silicon valley bank was broader than expected.

japanese prime minister fumio kishida made his first visit to ukraine since russia's invasion. he offered strong support to ukraine, and invited president zelenskyy to group the -- to join the group of seven in may. he made the trip after stopping in india to pressure prime minister modi to join others in shunning russia for the invasion. russia has decided to keep its oil production at a reduced level through june, according to the deputy prime minister. last month, moscow pledged to reduce its crude output by 500,000 barrels a day in march, in response to western energy sanctions. russia's oil output data has been classified since last year, but the deputy prime minister says that target will be achieved in days. those are your first word headlines. yvonne: still ahead, a preview of tencent's earnings and how its first-quarter results could make-or-break this $160 billion stock rally we have seen of

late. david: ahead of that, we have hsbc, and we will talk economics with frederic neumann, whether he actually still thinks a hike from the fed makes sense, and what it means for the asia-pacific, as we try to map out how central bank is in the region are looking at that and saying, we could be done? that is next. this is bloomberg. ♪

the first time your sales reached 100k with godaddy was also the first time your profits left you speechless. at the counter or on the go, save 20% with the lowest transaction fees and keep more of what you make. start saving today at godaddy.com get refunds.com powered by innovation refunds can help your business get a payroll tax refund, even if you got ppp and it only takes eight minutes to qualify. i went on their website, uploaded everything, and i was blown away by what they could do. getrefunds.com has helped businesses get over a billion dollars

and we can help your business too. qualify your business for a big refund in eight minutes. go to getrefunds.com to get started. powered by innovation refunds.

>> i think it is to fish soon to expect that the fed will throw in the towel, so to speak, on their inflation fighting. i think also not a complete pause may normally be counterproductive from the vantage point of the medium-term inflation objectives, but also it could send the signal that they know something worse that the markets are yet to learn. yvonne: carmen reinhart, former world bank chief economist on her expectations of this upcoming fed meeting, 16 hours, give or take away. frederic neumann joins us. fred, trained to guesstimate the

size of the hike is probably the easier part, it is probably what they say around the garden and the pressures they will take during the press briefing. how is your mind coping with this? frederic: with that they hike or not is not even the big question, the question is during the press conference, in the statement, what will be the messaging? is it a dovish hike or a hawkish fall? the market is pricing in a 25-basis point hike, so the path of least resistance is to deliver the hike, and then to control the messaging around this. i think that is what they will focus on. . we get a 25-basis point hike and then we say, from here are not we will observe exactly how financial conditions evolve in the next few months. and guess what, another hike is on the table but we make it dependent not on economic data, but really on how the financial sector involves. remember, we were data dependent on economic data when it came to inflation.

now, we are dependent on how the financial conditions involve. but no mistake, they are between a rock and a hard place. yvonne: christine lagarde said there is no trade-off between financial stability and fighting inflation. do you see it that way as well? frederic: as a central bank, you can have a bit of your cake and eat it too. from a central banks perspective, you have policy rates which you address, inflation expectations, and then you have all sorts of tools to help stabilize financial conditions you, learned freely to banks, you have the discount window, you have new tools. so you provide them liquidity. in that sense, you can have both. of course, in the extreme, you have to cut rates. but we are not in that stage yet. we are really just in the micro-management phase. i think they have actually done a good job so far doing just

that. david: markets look at the net-net effects of them having to balance these two contradictions of tightening policy, but making sure there is enough money in the other so things are stable. there is a net injection of money coming in because of the discounts with which banks are borrowing. how do you think they should manage that message? what is the message they need to send, money is coming out? or that money is coming in. frederic: in a situation like this, you lend freely and abundantly, but at a high price. you say, here is a liquidity, but this is the price. and then you get the financial system to adjust. now, when it comes to the inflation impact of tighter monetary policy, don't forget, the financial conditions are tightening and doing a bit of the job for the fed. so from that perspective, you could say, rather than hike three times we only need two more hikes in order to have the

same impact. but where that threshold exactly is we will not know until a few weeks time. it too early to tell. this could blow over by the second quarter. i think for the fed, remain data dependent, and we mean financial conditions of the next few weeks, as to whether we deliver hikes or not. yvonne: we have seen turmoil in at1 bonds. what is the debt risk in asia? frederic: it is much lower in asia. the banks are much more liquid, they have much more liquidity, they are less dependent on short-term market financing. he actually see that interbank rate in asia remained more stable than we saw in western markets. liquidity is still fairly solid. and i have to say, going into this episode, the absolute level

of capital, the absolute level of equity in asian banking systems has never been as strong as it is now. this is not what we saw in the run to the global financial crisis or even in the 1990's. that gives us that buffer. . one other difference in asia is that we never had that information shock, the rise in local interest rates, to the same extent that we had in the u.s.. the local books did not reprice to the same extent. in asean, the central banks raised interest rates, but nowhere near the 5% that the fed is about to deliver. david: business has always been usual, i guess that is a strange way to describe that. so what is going well in the asia-pacific, the two top things driving growth? frederic: one is that we did not have the interest-rate shock. the bank system is in a sound footing here. and we have chinese growth giving us a floor on demand. right? when you look at new export orders, they are starting to

inch up. tourism flows starting to come in in some markets, that is giving us a floor of economic activity. that should mean that for the second half of the year, asia is in the sweet spot. yvonne: it is almost like a goldilocks sort of outlook when it comes to china, because you are not really stoking inflation either given that it has been an uneven recovery so far. which economies are you most excited about than, in the apc reject? frederic: northeast asia you still have some cyclical challenges, when you think of semiconductor prices, korean won is still wobbly. still sticky inflation. but if you look at underlying growth -- indonesia, malaysia just keep barreling ahead. very solid domestic demand story. even on the export side,

malaysia has expanding exports last month where everybody else's declined because of growing market share. southeast asia is the sweet spot. then you have the china lift coming through the next two or three quarters. david: sort of a longer-term question, why do you think southeast asia has been largely bulletproof? frederic: one-story is the supply-chain diversification that is coming out of northeast asia into southeast asia. second one is the commodity story, which is a long-term bulls story because of climate, change higher levels of commodities. third, they managed the domestic side conservatively overall. think about the budget deficit in indonesia, is continues to shrink. we don't have the excessive debt growth we saw in recent years. make no mistake, they are still slowing, they are not immune to what is happening in the world.

it is just on a relative basis to how they are performing. yvonne: with china setting a growth target of 5%, that must be realistic, right? frederic: they are probably not going to overshoot that. they are setting the -- they are not setting the bar very high. there is a recognition that even if you have a cyclical uptick in growth, you still have structural issues. what we mean about the bright prospects is really the next year, and then of course, china still has two face demographics, debt issues and rebalancing. that is coming back. next year you could see the economy slow again, but then we are out of the troubles in the western world and regard that nice rebalancing. david: there is the china gdp target. what causes the overshoot that you just mentioned? frederic: pent-up demand. we can be as conservative and say they don't have enough savings, et cetera -- every economy in the world that

reopened, you see the consumer coming back stronger than expected. the chinese will bounce back as well, at least for two quarters, you will see the travel and spending pick up a bit. yvonne: frederic neumann, head of global research asia at hsbc. plenty more ahead. this is bloomberg. ♪ get help reaching your goals with j.p. morgan wealth plan, a new tool in the chase mobile® app. use it to set and track your goals, big and small...

and see how changes you make today... could help put them within reach. from your first big move to retiring poolside and the other goals along the way wealth plan can help get you there. j.p. morgan wealth management.

david: welcome back to the show. we are looking at evs in this part of the equity market. electric, some of these moves. we were having a conversation with the nio chief financial officer, and they said the losses, that is basically a 2020 story. "let's look ahead." yvonne: they sounded very confident with their sales target, talking about doubling it. we are up close to 8%.

geely auto, another earnings story. good vibes spreading into the sector. you can see byd is up 4.5%. a broad-based rally when it comes to developers, energy. thanks even doing well, even tech. tencent is the next one to watch. david: we'll unpack what the tencent story and what the green shoots might be when they come out with the earnings story when talking to analysts earlier on -- later on. the market seems confident that we will not get the boogeyman in the fed tonight. we will talk tencent in a couple of minutes here

>> the reopening is definitely

supportive of the ad spending and there's an additional layer for tencent because now that approval has resumed, we expect publishers and manufacturers will have higher willingness to expand their ads budget a little bit, so this is going to be beneficial for large advertising platforms for gaming. >> the companies are looking at much larger business than previously, it's a more mature state of development. like a meandering river, can expect it to live it the same growth rates today that it did three or four years ago, but there has been a structural change in markets. and regulations impacting multiple parts of the business, so it's still a very fine business that can grow double-digit over the next 4-5 years.

david: fresh out of the newsroom oven. just some good insights there ahead of this key earnings release later today. stocks are doing very well today, alibaba and jd.com across the board. yvonne: there's a lot contingent on that, gaming approval coming back. they actually are outperforming the likes of alibaba and jd just this year alone -- alone. a lot of expectation then they may be able to snap out of two quarters of contraction. let's bring in as may powell, great to have you. what are you watching out for the most in tencent today? >> i'm expecting to be -- the earnings to be broadly line. we are more focused on the forward guidance as to post a

what the actual results will be when they come in. focus turns to what is going to come out over the course of the next few quarters. that will be one of the core drivers in the fourth quarter. since november we've seen the round of -- it will be about, over the course of the past year, tencent has been ramping up video accounts. so were looking at tangible evidence as to strategizing around monetization. david: what early signs of you seen so far that they are ready to talk about a return to montes asian?

have we seen anything that indicates that that is something they're very excited to talk about today? >> it will be back to gaming. we saw early this week there was a round of game import approvals. that indicates that there ready to go heavy on marketing. the demand side, we are expecting things to recover given the macro into cutter's -- indicators are in line when it comes to spending. last year was when it took a jump. yvonne: we were just talking to our bloomberg intelligence analyst about whether his video accounts, whether it's ai, there are still very small chunks of the business here right now and overall he doesn't see it is very transformative for the business. what is your take? >> as robert pointed out, it's

already a gigantic machine. there will be new pockets. over the course of last year what we saw was that cost autumn is a must keep the. that will be a core driver leading to market expansion in the fourth quarter. looking ahead, what we put in our outlook is that we're going to see new growth drivers. video count month sedation is going to feed across the spectrum of tencent properties, especially around advertising. yvonne: does it mean that will have to switch more to the investment side of things for next year versus cost-cutting? >> i would say it is more about cost-cutting, but the second thing will be around in growth drivers. i think were only passed the peak of china internet investment cycle. the next round will be about what's incubated in health.

it is similar to what baidu has put out. so we expect that to be announced over the next quarter. that's one thing, and the second thing will be around video counts monetization. there was a decade of full sacked ai development. over the past week i was in china, to witness the baidu earning launch. the recorded launch, i would say i also had my hands around baidu's earning bought so i've been test driving it as well. there are six different metrics, i exceeded my expectations in speed and content moderation, which is crucial for chinese

regulations. yvonne: i'm curious, what are some of the questions that you ask? how do you test this thing? what really surprised you the most, i guess. >> what surprised me the most is that the market has underappreciated baidu's earning bots. when i test drive it, the question i ask would be, for example, write me a few lines of code. that's one thing. another thing would be cost model capability. when i type in instructions he can basically pop up a bit -- video clip or audio or content generation. yvonne: how close is it to chatgtp? >> i tested whether it's the new thing. overall without a doubt chatgtp is still advance compared to the chinese chatgtp alternative. and generally it is 1-2 years

ahead of chinese language models. david: i love how it has a content moderation component to it because that is the operating environment. talk us through a little bit about what is content moderation for an ai chatbots? >> that's a fantastic question. one question ask would be, how do i conquer the world. in general the fact that the bot refused to answer the question is a bonus for me. baidu has a legacy of search, and you can layer that into content moderation for ai. david: what is the chatgtp answer to how to i conquer the world? >> it refuses to answer that question as well. yvonne: no comment.

great to have you. in terms of investment strategy then, morgan stanley was saying it's more about initial server stocks versus upstream developers when it comes to ai. how do you see it as an investment strategy? >> you pointed out that peeking shuffles would be a good way to play the giant ai phenomena. chinese business models are going to be disrupted, from content generating companies, the cost curve will go down to zero. they're giving commissions and we're going to see that transform into content generation savings. the second point will be in terms of online gaming.

the second thing will be related to tencent. the fact that it encompasses that into digital entertainment will be strong. yvonne: focus on the platforms, so interesting. you should bring it by we should tested on bloomberg. david: thank you so much. from earning an chatgtp to our earnest and chart gtp, here is the special chart of the day, upward revisions and earning forecasting china have stalled. do we get the guidance from these big companies for analyst to bump us up even further? we will find out in the next few days. yvonne: will take a look at geopolitics and chips, the biden administration is set to unveil tighter restrictions.

stephen engle on what we're hearing so far. >> essentially we all know about the chips and science act in the united states in october or thereabouts. it spread a lot of nervousness in china but with chipmakers, some of the korean players did get a moratorium or reprieve for a year to not comply. but this new tightening we are hearing through the commerce department sources and the like is going to make it a lot more difficult and onerous for these chip companies like intel and samsung and others to do business and to expand their business in china. essentially if you're taking u.s. federal money, grants or tax breaks that are designed to attract facilities to the united states, you take federal u.s.

money to go to the u.s. and build there, you're going to be restricted from how much you can expand in china, either by 5% for advanced chips or 10% for less advanced technologies. also there is a cap on investment that they can make in china of $100,000 u.s.. that might buy a couple of screwdrivers, right? i'm being facetious, but you get my drift. they are really tightening the screws and making these chip companies to make very strategic and very polarizing decisions. this is what gina raimondo had to say, she is the commerce secretary, basically likening this chips act as a national security initiative. she says these guard rails will help ensure malign actors, and i'm guessing she is referring to the adversaries in the geopolitical role, whether it's russia or china, do not have

access to the cutting edge technologies that can be used against america and our allies. drawing the lines, obviously. david: there is also the chinese ambassador to japan embarking on this new diplomatic mission. the backdrop also. >> normally when a new investor takes residence in his country, is not really news, but it's against the backdrop of all these things that we've been talking about for the last week or so and even beyond that. it's at a time when the prime minister japan is standing side-by-side with zelinski in ukraine. a new have the chinese president xi jinping sitting side-by-side with vladimir putin in moscow. japan and china have legacy issues, they have those semiconductor issues. tokyo electron, the big

equipment maker, they probably have to comply if they are not already complying with those u.s. export controls to china. i don't envy this ambassadors job going to tokyo and dealing with this and vice versa. david: stephen, thank you. let's get over to vonnie quinn in new york with the first word news. >> a staff level agreement for 15.6 million dollar loan for ukraine. it's aimed at helping promote ukraine's long-term economic growth recovery and pave the way for its entry into the european union. the executive board is expected to tackled the matter in the coming weeks. the ecb is asking lenders about indirect exposure to credit suisse after finding the balance sheets show few art noah holdings of the junior desk. the takeover credit suisse rendered around $17 billion of

debt wordless. treasury secretary janet yellen says the government could repeat the drastic actions the banks took to retain depositors. authorities took extraordinary steps to bolster confidence including a new backstop for lenders and new rules at its emergency lending facility. >> our intervention was necessary to protect the broader u.s. banking system. and similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion. >> the swiss government is temporarily suspending certain forms of bonus pay for employees. credit suisse had already decided not to award bonuses to

its executive board members for 2022. and those are your first word headlines. yvonne: coming up, shares jump in hong kong and a cfo tells us the company is confident of hitting its sales target. more from our market moving interview next. this is bloomberg. ♪ get help reaching your goals with j.p. morgan wealth plan, a new tool in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside and the other goals along the way wealth plan can help get you there. j.p. morgan wealth management.

yvonne: checking ev makers in asia, the one-year, 7.5% pop, the rest we seen in five months after our interview when we spoke with the cfo talking about how he is confident the company will be able to double their sales this year to 250,000 units. here is more. >> that we are confident we will achieve our sales target by focusing on three key actions. first, broaden the product portfolio. we are going to launch five new models based on our platform 2.0 in the middle of this year. after transitioning all the models to platform, we will be able to offer eight models in

diversified market segments. second, expand the charging and -- we plan to deploy power stations in china along the highways and in cities with high potential. by doing this, we are able to access more markets and offer better recharging for users. third, unlock the value of technology. plan to roll out more of the features based on our in-house technologies which come standard on every new vehicle. >> what are your plans on pricing, because there is somewhat of a price war going on in some segments of the ev market in china. what are your plans around pricing your models?

>> the short answer is that we always try to maintain a very stable price system. actually in the last year and this year, the china auto market is going through a very profound reshuffle. in the end, a price war would lead to industry consolidation, but we would like to differentiate ourselves by products in a variety of technologies, and vibrant user community. yvonne: what about the supply? disruptions we've seen since covid? it has forced a lot of automakers to shift. how have you looked at this? >> last year was a very turbulent year. a lot of disruptions from the

supply side and sometimes on the demand side. this year, it looks better and better. first we go through this price were at the beginning of this year and then we specked the industry to go through some some fundamental consolidation. but obviously the demand is still there. people just want to make better choices. david: we are looking at a profound consolidation in the industry. are you saying there are too many players out there and do expect the number players to decrease substantially? are you looking to buy any of the existing players? >> it's almost a consistence -- consensus that china has too many automakers. david: that was the ceo speaking

to us exclusively about an hour back, their stock up as much as 8%. plenty more ahead. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates, exemption certificates or filing returns. avalarahhh ahhh

ahhh ahhh yvonne: equity markets here in

southeast asia, singapore punching about 1% higher. nike said sales rose more than expected as it trimmed the glut of its inventory that had forced a company to sell products at a discount. global revenues were up 14% in the third quarter, beating analyst expectations. the weakness in china persisted with revenues from the region falling almost a percent. lng prices could rebound to $107 per megawatt hour due to an increase in demand. the company says china has slight -- after dropping 2022, the recent slump in natural gas prices has also made the fuel more attractive globally. gamestop shares soared in extended trading after the company reported his first quarterly profit in two years. the income was $48 million. turnaround from last year's loss. net sales fell over 1% but still beat analyst estimates.

the ceo says he now sees a path to full your profitability. david: also soaring has been gold, maybe not as much today but it tells you how far we have actually come. and bitcoin above five a few weeks back. they don't even know what we are going to know, really. yvonne: we are leaning closer to 25 basis points. goldman-s of calling for positive. nomura still thinking a cut, that is that rare exception here on some of these calls. sectors and everything lies, everything still looking pretty good. i guess this is the calm before the jay powell press conference.

tech leading the charge here today. david: all sector groups are moving higher. is the fed going to be called to push back against the up to missing -- optimism out there? what is there for them left to do? yvonne: bloomberg economics says what we seen from all the bank collapses, maybe it replaces two rate hikes for the fed. does that give you a little less room to hike is the key question here. but yes, we are seeing a broad rally here. palm oil heading the opposite direction here in the region. this is bloomberg. ♪

get help reaching your goals with j.p. morgan wealth plan, a new tool in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside and the other goals along the way wealth plan can help get you there. j.p. morgan wealth management. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen...

and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. everything's changing so quickly. for smarter trading decisions, before the xfinity 10g network, we didn't have internet that let us play all at once. every device? in every room? why are you up here? when i was your age, we couldn't stream a movie when the power went out. you're only a year older than me. you have no idea how good you've got it. huh? what a time to be alive. introducing the next generation 10g network. (jennifer) the reason why golo customers have such long term success only from xfinity. the future starts now.

is because we focus on real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy. release sets you up for successful weight loss because it supports your blood sugar levels between meals so you aren't hungry or fatigued. after i started taking release, the weight just started falling off. since starting golo and taking release, i've gone from a size 12 to a 4. before golo, i was hungry all the time and constantly thinking about food. after taking release, that stopped. with release, i didn't feel that hunger that comes with dieting. which made the golo plan really easy to stick to. since starting golo and release, i have dropped seven pant sizes and i've kept it off. golo is real, our customers are real, and our success stories are real. why not give it a try?

david: the anticipation ahead of the fed. it's almost 11 a.m. in hong kong and shanghai. i'm david ingles. haslinda: i am haslinda amin in singapore. here are the top stories. asian shares gaining as concerns ease. the fed in focus with investors waiting an updated dot plot on tomorrow's rate calla. . a new headwinds for chipmakers, the u.s. going to tighten restrictions on their chinese operations. $.10, set -- tencent said to be tested by today's crucial earnings report. new surge surging as the cfo tells us that confidence is doubling ev sales in hong kong. it's risk along -- on what he

--on when it comes to equities. using concerns over the banking crisis. when you look at the markets part -- pricing and on an 80% chance of a basis move up from the fed. not much clarity beyond march. that is what investors are waiting to hear from powell when he speaks. int terms of the benchmarks, in asia, green across the board. all sectors in positive territory. we had the taiex up by 1.3%. in fx markets, we have the dollar inching towards us. the negative side is trading at three we close. think of where we are in terms of the offshore yuan. the korean won getting up to 20% in the bond market, we're tracking yields. aussie 10 year yields a higher by almost 13 basis points. they're in mind the suggestion that the fed will say the fight against inflation is far from over.

tightening will prevail. david: yes. absolutely. really in what form will they say that? will that be in the form of a move? and they hedge with a statement and a briefing or will they say that with a pause and then they basically tell us that they will need to move in the future. to that point, the fed meeting, we are going into this, multidimensional. this is the easiest one to guesstimate if we could. it's the size of the hike and whether they will move. markets think that there's enough consensus that they will probably move, 25. that is as far certainty goes. we don't know what they will do with the docs, we don't know the tone is, we don't know the answers will to the uncertain questions moving into an important press briefing, with the banking crisis and the bigger picture in terms of financial stability. haslinda: that's right.

the pressure is on for jerome powell. with more, kathleen hays. risks in both a fed pause and in the rate hike. what is expected tomorrow? kathleen: in the context of what you are both commenting on, this consensus that they will probably do a 25 basis rate hike, has everything to do government steps have taken to get this banking crisis under control. the inflation is a given, all these other things. but that is a shift we see even in the past few days. 25 is more feasible now. the markets, that is what they are pricing in. pricing and may be a 25 basis point hike beyond what people think the terminal rate will be. it was five percent in the next set of dog -- dots. december. so, that is where we are going to see them going now.

but, i think the interesting thing too is this whole point, following the ecb, not a virgin. they did a 50 basis point hike in europe. because of the inflation problem, they went all out. the fed will not go all out. that same argument arises. the head of the world bank and the author of this time is different, she is firmly on board. she says the baseline is 25 basis points. let's listen. >> i think it is too soon to expect that the fed will throw in the towel on their inflation fighting. i think also not a complete pause may not only be counterproductive from the vantage point of the medium turn in for --term inflation objectives but could send the signal that they know something

worse that the markets are yet to learn. kathleen: she stressed in our conversation that the policy is still not restrictive, when you have a negative real funds rate, you still have stimulus in the system. she thinks it would be a mistake to stop now, completely, until you see there are more signs. maybe credit tightening will do that. she is in the lane that says they have more to do. so, she thinks that they may go slowly. but there's probably going to be movement ahead. david: kathleen, we don't know what we don't know, right? kathleen: truly. david: there is a lot of that going into this. many moving parts. potentially, where should we look for potential surprises? kathleen: coming out of this, people are saying is not so much what they do, it is what they say. when the headline start flashing

that is what people are going to want to see. what are the signaling? what carmen reinhart says they should do? are they going to show that they will reduce their gdp forecast, because they are uncertain of credit tightening, and less credit being extended could do. are they going to change their inflation forecast, since inflation is high? that is the first question. they've had an important phrase in the policy statements at the last several meetings, the fed talks about ongoing increases in interest rates. will they go ahead and hike and say that more will come, but will they take it out of the statement. finally, doves, the economic advisor of obama, he is the new chicago fed bank president. partly because he was skeptical of inflation getting high, and it did.

and because he worked for democrat people figured he would be more dovish. what i know of austen's he is the kind of guy that will do what is right. people are wondering if he will say where we hiking rates, let's pause and see what happens. there people in the camp of needing to pause. that will be another interesting part of the policy statement in the press conference tomorrow. david: kathleen hays, are global economics and policy editor. to kathleen's point, the end is going to come. it's a bit deep. i'm talking about the tightening cycle. it's how far we are at the end of the tunnel. positioning ahead, we're nearer the end than we were, as a function of time, than a few weeks ago. the j.p. morgan treasury client survey tells us that the change from week to week is that there are more outright long in the treasury market, their bets that rates will fall. all these changes in recent days has led to this recent graphic. the stakes are incredibly high,

going into this, when you look at actual two-year treasury futures. you have to go past the gse to the early 80's to get something that we have gotten these last 10 days or so. it is something going into the fed meeting. i cannot stress this enough. vonnie quinn has a first word news. vonnie: thank you. japanese prime minister kishida has made his first visit to kyiv since russia's invasion. he offered support to ukraine and invited linsky --zelinski to join the summit in may. kishida made a trip to new delhi to pressure the prime minister to join other leaders in shunning russia over its invasion. japan is set to host the g7 summit in hiroshima. the imf has reached a level agreement for $15.6 billion loan for ukraine, to promote the economic recovery and pave the way ford's entry into the european union -- for entry into

the european union. the executive board is set to tackle the matter in the coming weeks. the biden administration set to unveil tight restrictions on the chinese operations of chipmakers that get federal funding. sources tell bloomberg the commerce department will outline the new curves as it disburses funds under the $50 billion chips and signs act. they include a one hundred thousand dollars spending cap on investments in advanced -- cap on investments in advanced capacity. silicon valley bank's collapse and its effects on chinese startups may be greater. the biden administration is pulling together data on chinese companies that may have had accounts with regional u.s. banks. the u.s. wants to know if there is a risk of broader contagion in china. russia has decided to keep its oil production at a reduced level through june, according to the deputy prime minister. last month moscow pledge to reduce its crude output by

500,000 barrels per day in march in response to western energy sanctions. russia's output data has been classified since last year. nokak says to be targeted -- novak says the targeted outlook will be achieved in days. global news 24 hours a day on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries around the world. i'm vonnie quinn. this is bloomberg. haslinda: still had, we'll hear from anand rathi about why india remains the brightest spot in a bleak global market landscape. david: fritz ratings joins us, to tell us how this lobe will banking crisis is impacting lenders. are there any stress points? should be paying attention to. jonathan cornish joins us. coming up. this is bloomberg. ♪

at morgan stanley, old school hard work meets bold, new thinking, ♪ to help you see untapped possibilities and relentlessly work with you to make them real. ♪ fallen in love with a portable blender. blendjet 2 gives you

ice-crushing, big blender power on-the-go. so you can throw in your favorite ingredients and blend up a delicious smoothie anytime, anywhere. blendjet 2 even cleans itself. just add water, a drop of soap, recharge quickly with any usb port. ready to fall in love? order yours now on blendjet.com

>> our intervention was necessary to protect the broader u.s. banking system. similar actions could be warranted if smaller institutions suffered classic runs that pose the risk of contagion. haslinda: that was u.s. treasury secretary janet yellen. wall street leaders and u.s. officials are said to be

discussing a potential intervention at first republic bank, that includes government backing for a private deal. nabila ahmed joins us more on this bloomberg scoop. what is the latest on the first republic rescue? nabila: as we heard secretary yellen just say, they are ready to intervene. what is happening with first republic is that regulators are speaking to bank chiefs about how to do that best. last week, bank chiefs led by jamie dimon said it would be best if 11 banks got together and put in 30 billion dollars of deposits to help out first republic. we're talking about a government intervention. some kind of backstop. among the options they are discussing, the government could play a role in lifting out assets that have suffered these losses. bad assets inside of first republic. investors are interested in helping out the bank and

potentially paving the way for sale. those bad assets have been a sticking point. other things that they are discussing is a liability protection, applying capital rules, more flexibly or easing limits on ownership stakes. there is a lot -- flexibility on easing limits on ownership stakes. in the next few days, it will be critical. david: on the other big story on ubs and credit suisse, that has changed a lot of things that were in the planning, including the conversation. why is ubs trying to unwind the deal with the client? nabila: it is basically because ubs thinks it can see value in the credit suisse investment banking business. they're keen on the advisory business, not so much the trading side. if this michael klein deal happens, they lose the best people to that's been out. the problem is that credit

suisse last year, promise to pay him $175 million to do the deal as well as another $10 million of fees to help them restructure the bank. ubs is trying to figure out how to get out of that deal. without having to pay too much. david: yeah. i mean, all of us certainly are in that part of the conversation on everything. thank you so much. nabila ahmed there. let's get more on the banking sector. is there anything more to worry about in the asia-pacific you look at the lenders? let's bring in jonathan cornish, head of asia-pacific think ratings at fitch. thank you so much for coming. i'm sure you guys have been busy these last few weeks. even plural. why don't you start. instead of me asking the question what is the number one question you have been getting? jonathan: the number one question really is are there any aipac banks that are vulnerable

like the institutions that we have seen fail recently. whilst there are definitely risks out there, they are appropriately reflected in the ratings we have, by and large, the fundamentals remain in place. there are certain concentrations amongst institutions. that would be mainly the new were, smaller digital banks --newer, smaller digital banks. there concentrations where there may be exposure to banks. corporate deposits in particular in china. but, aside from the fundamentals , people are wondering whether or not banks would be supported and whether the authorities

would step in to provide support for the system or the individual banks. and the answer to that is yes. so, we see in the region here, much more preparedness of the authorities to step in and provide support. that's generally reflected in the long-term. haslinda: of course, 81 bonds in focus. the market seized up on monday. i'm wondering in terms of 80 one bonds, where you see the biggest risks in asia -- 81 bonds, where you see the biggest risks in asia? jonathan: there has been volatility around that news. i think we should reasonably see some more challenges for banks in terms of those that may be looking to issue. i'm not aware of anything significant. being planned at the moment.

and if there is some issues, you will probably see some increasing costs as well. it's important to note when it comes to 81 issuance in the region and issuance thus far, that's outstanding, it fails by comparison to other regions. but, most of that, tends to be contractual, which means you could have situations whereby investors could see losses happening prior to the shareholders, in losses. haslinda: 81 is a key funding source for a lot of banks here. how are you assessing the risk? what are you looking out for? jonathan: sorry, could you just explain that a bit more? haslinda: what are you looking at for, to see the risks from 81

bonds? jonathan: right. well, we don't see any risks with regards to the bonds that are outstanding already. they tend to be triggered based on non-viability assessments by the authorities or there are certain triggers, based on cet1 ratios that could lead to the conversion or the right off of the securities -- write off of the securities. the issuance that have issued tier one securities and have triggers are away from the threshold at the moment. right now, we don't see any particular risks with regards to performance of those securities. it would be more in relation to the market volatility that could very well lead to more

challenges with regards to potential issuance of future tier one securities. david: what about the posits? when --deposits? when we get blowups there tends to be an overcorrection on let's see what went wrong and try to address that. the broader situation on how if, one, deposits have been falling, that's been coming down. to your point on the diversity of banks deposit base, do we now need to place more weight on things that did not usually or were not a source of risk? things like that to gauge the risk of file of a bank -- profile of a bank? jonathan: the key is to look at the nature and concentration of the posits with regards to those that might have higher --concentration of deposits with regards to those that might have higher -- by and large banks

around the region have a much more granular deposit and retail deposits at that. it whilst we still expect to see some movement,, within the systems and across institutions, we think that by and large, the fundamentals remain in place in their criteria appropriately, assesses or factors in these risks. and key to our ratings or one of the keys is our assessment around funding and liquidity. where there are potential vulnerabilities, they'll be reflected in the ratings. there were instances, such as what we have seen in the moment, that can be largely unpredictable and exceed what our expectations would be on a cycle basis. they are not necessarily going to be reflected in ratings.

haslinda: thank you so much for your time. jonathan cornish. fitch ratings. we have a big interview. coming up on. thursday. jane fraser joins david rubenstein at economic club in washington for the first conversation with a major u.s. bank leader since the turmoil began, starting at 8:00 a.m. on thursday if you're in hong kong. david: that is exactly where i am. we've been tracking this. we don't normally --follow this closely day today but given the extreme move, to 20 one basis points yesterday, we are down 171. you can see some of the pressures are alleviating. we'll give you an update tomorrow. today, may be a long story. plenty more ahead. this is bloomberg. ♪ it's easy to get lost in investment research.

introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management. introducing the new sleep number climate360 smart bed. the only smart bed in the world that actively cools, warms and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number.

it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management.

haslinda: welcome back. let's do a quick check of the latest business flash headlines. nvidia has developed a new tool to ease a major checkpoint in chip design and is enlisting tmsc to an --to do it. it will dramatically accelerate the development process for chips. it claims to create the views to edge chip designs onto materials overnight, rather than over two weeks. hsbc, the new owner of silicon valley bank's uk firm, is said to have a meeting this week. the bank will meet with technology startups and venture capital firms in the u.k. and europe. hsbc took over svb uk for a dollar to sense. it has agreed to inject close to $2.4 billion into the unit.

david: 3% up on hsbc as we enter the last 40 minutes in hong kong. the latest surveys are out. from bank of america, the survey, i will not go into the details but it is certainly cautious. but if you had to bet the bank and the house on certain things that is how china is in a new credit cycle. it may provide a floor on things. positive on chinese equities. that is the crowd favorite. we'll leave you with a look. ev's are catching a bid. in a moment, we will preview tencent earnings. that's bloomberg. ♪

>> the reopening is supportive of the as spending.

there is additional layers for tencent. the approval has resumed. we expect publishers and manufacturers will have higher willingness to spend --and expand their budget. this will be beneficial for large advertising platforms. >> we expect to be gaming to be back and loaded. that is one of the drivers of the fourth quarter. it will be around what the russians are doing and monetization. over the course of the past year, they have been ramping up the tech. you are looking at tangible evidence as to what their strategizing around multiple's asian --motivation. haslinda: taking a look at where some of those tech stocks are

doing right now. tencent up by 2.5%, ahead of its q4 numbers. on track to outperform the hang seng tech index, since the gauge was introduced in mid-2020. they have raised tencent price target by 17% since the start of 2023. alibaba trading up as well. david: yeah. probably, we don't need to look at the numbers. they have upgraded their price target on tencent. i'm guessing we are 80% lower, from the dreams of 800? two years back? if it is not clear we are talking about tencent. it should reverse looking at forecast, the two successive quarters of revenue contraction, growth. beijing relaxing straightening over the gaming sector -- scrutiny over the gaming sector. let's talk about the many facets of the company.

what is top of mind? >> the market is expecting decent numbers underpinned by the cost-cutting we have seen for tencent and many of its peers. the cost-cutting should underpin margins. essentially, as we have mentioned early on this morning, tencent is a broad-based business. it has fingers lots of pies. it has a great proxy on the reopening play across china. wer'e looking for ever ash we're looking for evidence that business ash we're looking for evidence that businesses rebounding. the regulatory pressures on the gaming sector appears to have passed. we're looking for evidence with the gaming pipeline coming through that that will drive revenues there. other parts of the business, fintech should pick up now that people can go about their daily lives again. david: ai? is that something we should be talking about? robert: ai will feature every other word, almost in the presentation, it's the buzzword of the month, of the quarter.

reducing my cynicism down a bit. i think their genuine benefits for tencent in ai. it's unlikely to be transformative to the business overall. i guess, one point to consider. tying into conversations you had with others this morning, clearly the infrastructure companies, the chip companies will benefit from ai, nvidia, the server companies, that is clear to see. the question for tencent and some of the platform companies is how will they monetize this? maybe ai improves their checkbox, other aspects of the business, makes for more realistic interaction with game characters, but how would they monetize it? are you going to go out and play -- pay more for your gain are your kids going to do it --pay more for your game, are your kids going to do that? monetization is a key issue that is not being addressed in the market, not just for tencent but

for aa across the board -- ai across the board. if you take a step back, investment in ai is is a cost for businesses, it's something that will enhance their products going forward. how will they recoup the investment? that is the key question the market is the focus on in the next few months and quarters. haslinda: not all is clear in terms of regulation, as well. there is a chance china may clampdown on big tech. robert: in terms of regulation in china, i think the market and i would agree. the point of maximum regulatory pressure has probably passed. look back to what happened two weeks ago. we saw the government issue statements around its concern on short video addiction amongst minors. we've not seen a regulation come through. maybe that was a taste of things to come. but, again, investors should

bear in mind that whilst the risk of incremental major new regulation is probably not there at the moment, tencent's business remains highly regulated. that will bring additional cost burden to them. it will have some long-term impacts on the growth outlook. the regulatory pressures are still there. they have not gone away. tying back into games, games, there are still concerns about gaming addiction among minors. that remains an issue on the business. david: thank you. robert lea, out of bloomberg intelligence. that takes us into the broader conversation on the earnings story in msci china. he saw it higher after the pivot of covid --you saw higher after the pivot of covid. tencent, cs pc pharma, china

telecom, orient overseas are coming out, maybe they move -- will move the needle. haslinda: china electric vehicle ev maker surging in hong kong after the ceo told us there confident in doubling sales to 250,000 units. here's our exclusive interview with the ceo of nio. >> very confident to achieve our target in 2023, by focusing on three key actions. first brought in the productivity. we're going to launch new models. based on our nio platform 2.0 in the middle of this year. after transitioning all the models to the platform, we'll be able to offer eight to models, complementary and competitive in diversified market segments.

expand the charging and swapping network. we plan to deploy additional 1000 positions in china. with high potential. by doing this,w e're --we are able to access more markets and offer better recharging experiences for existing users. third, look at the value of 80 technologies. we plan to roll out more advanced features, based on our in house technologies, which come standard on every vehicle. david: what are your plans as far as volumes, and pricing? there is somewhat of a price war going on in some segments in the ev market. what are your plans? >> the short answer is that we always try to mitigate a stable

pricing system. actually in the last year and this year, the china auto market is going through a profound reshuffle, thanks to the increased ev penetration. in the end, the price war will lead to industry consolidation. for nio i think, we would like to, compare products comprehensive parts of infrastructure, and vibrant user communities. yvonne: it has forced a lot of automakers to shift where their operations are, supply chains, inventory conventions, how have you looked at this? >> actually, last year was a turbulent year. a lot of disruptions from the supply side and sometimes on the demand side. but, this year, it looks -- it

looks better. first we need to go through this price war at the beginning of the year. we expect the industry to go through some profound fundamental consolidation. obviously, the demand is still there. people just want to make better choices. david: we are looking at a profound consolidation in the industry. are you saying that there are too many players out there? do expect the number of players to decrease substantially? are you looking to buy any of the existing players? >> i think it is a consensus that china has too many automakers. we have no plan to by anyone. -- buy anyone. david: that was the cfo of nio. an hour after the interview, the industry group actually urging carmakers and the government to

end the price war. one of the topics we talked about there. it is a longer-term solution and return to normal. let's stay in china. the biden white house is unveiling tighter restrictions around chinese operations of chipmakers, to get u.s. federal funding. for more on the story, stephen engle is here to talk us through it. how will these curbs work? stephen: just this last block of television has exemplified how semiconductors are in everything. whether it is ai, the automobile industry. it has become a national security when you have the ip to the high end advanced technologies, down to several nanometer technology that the top players have. we're hearing from commerce department sources and the congress department as well is that the $50 billion chips and signs act that was passed in autumn to incentivize chipmakers

to go invest in the u.s., they will be tightening these restrictions. it's going to be an owner decision for the chipmakers to choose where they are going to spend the money. if they're going to take federal money, like tsmc, to build those plants in arizona, they are going to have to face restrictions on what they can invest in china, to the tune of 5% expansion for advanced technologies, 10% for more mature technologies and only 100,000 dollars to expand in high-end capacity in china. that will force a lot of the chipmakers, intel, samsung tsmc to choose which side. haslinda: more guardrails to control china's tech ambitions. stephen engle, thank you so much. let's get the first word news. vonnie: the ecb is asking

lenders about indirect exposure to credit suisse after finding that their balance sheets show fewer noah holdings of this was firms junior debt. the watchdog is said to be widening its approach to ask banks if they face risk from the clients. it wandered around $17 billion of 81 debt. the swiss government is so spending -- suspending certain bonus base for employees. they are invoking the swiss banking act to impose a pay related measures of a systemically important bank of state aid. credit suisse decided not to award bonuses to its executive board members for 2022. the south korean prosecutors indicted a main oppositional leader on charges related to a land scandal and bribe. the indictment came after he went through three rounds of questioning. the case stems after his didn't as mayor. he ran the investigation is

politically motivated. global news 24 hours a day on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries around the world. . i'm vonnie quinn. this is bloomberg. haslinda: still to come. our exclusive interview with the anand rathi chairman. we talk about how india's reacting to the banking sector and how he is betting big to the $5 trillion economy club. keep it here with us. this is bloomberg. ♪ get help reaching your goals with j.p. morgan wealth plan, a new tool in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside and the other goals along the way wealth plan can help get you there. j.p. morgan wealth management.

haslinda: credit suisse was a banking crisis. we saw the bailout. it joining us to discuss the impact of the credit suisse takeover and thinking turmoil in india is anand rathi. chairman of the anand rathi group. in terms of impact on india's financial sector, what are you seeing? >> suis bank, particularly credit suisse, they have a large presence in india. --they are not a large presence in india. it's not going to have an impact on india. we don't see an impact on the

indian banking system. and on the india economy because of the credit suisse issue. haslinda: a regulations -- are regulations enough? there is talk about how banks will see tighter scrutiny, tighter regulations. >> you're right. i think, regulators have been doing a great job. in india, the regulators have been tighter. in fact, the indian banking system, the lesser mps are the problem in the balance sheets. it has been proactive. very good. in the pandemic, the central bank played a very positive role in creating liquidity only to the extent of required. it did not go overboard on liquidity. i think that is keeping the

indian banking system in good shape. i would say that what you are seeing in the u.s., compared to that, i would put indian regulation at a better place. david: i am wondering, when you look at what happened in the u.s., what do you think what wrong? people blame higher interest rates. could you give us your own thoughts on what went wrong? >> if you're seeing in the bank, svb, they were borrowing short-term and not putting it in the long term government securities. that is going to be a risk. yes, interest rates, that was known. people only wonder how the regulators of a large bank not realize that there business

model was building long-term securities. the liability was mid smashed -- mismatched there. i think interest rates are part of it. but regulators, particularly for the large banks, need to look at their liability expenses on a regular basis. so, i think, again if value security is go up, they be off. i think to my mind, it would have been better. david: what about funding sources? do you think that is an issue we need to look at more closely, just globally, as a banking financial system? >> in any banking, the key thing

is mentioning the proper match between the asset liabilities. and also provide long term liquidity in the system. most banks, globally, do provide large amounts of liquidity for service accounts. in india, we have one or two large banks coming under pressure. but it was such a huge ability. and the support coming from the central bank helped of them. globally, it will have an impact. we need to start thinking of having a much better match in liability and the term period. haslinda: if you take a look at the indian economy, it has been resilient. the most recent data suggests weakness. is coming into the system. how do look at that in terms of investing, investments, where

should you be putting your money? >> i was still rates india is the best destination for putting money in. the forecast, not only by indian authorities, but global authorities, everybody is talking about betting up the expected gd group -- gdp growth. my belief is that the economy is doing very well with the budget. we received this budget, a huge amount on the first sector and the housing sector, it's always going to be a good reminder coming in. , next year, as you're talking about the gdp growth of 5.5% plus, it looks achievable. you see in context of the world economy, india is among the best

performing economies. my strong belief is that i don't think it is going to slow down. it will continue to do well. because of the huge investments coming not only from the government side, also, you will see that the capacity in the large industry. now, the new investments are planned in the coming year. haslinda: optimism, lots of it, but we are seeing a pullback in terms of foreign capital, which sectors make it impacted? >> because of the war -- hello, please repeat? also, talking a foreign capital, if you are seeing that the last 18 months we had a huge outflow on that un this -- and the stock market failed. more than $20 billion.

but more than compensated. -- but it more than compensated. now, the indian financial savings are coming to the markets. indian flow will continue to hold capacity investments. we have recorded the highest rba. it will continue to come. look at the possibility of more demand coming from china. we're seeing it on the ground, for exports, it's going up. looking from the investor angle of it, foreign inflow should come. my belief is that the money chases earnings.

were --where earnings are, money will come. long-term, india will that if it. david: thank you so much for your time. have a great day ahead, sir. chairman of the anand rathi group. indian markets are up and running. bids up .5%. plenty more ahead. we'll get you ready for the trading day in the middle east. we get ready for the america session -- american session. this is bloomberg. ♪ 92% still active? seems high. seriously? it's just a bike. wait. they make a treadmill with an intuitive speed knob? yeah. want to try? 92% stick with it, so can you. start a 30-day home trial today.

terms apply.

haslinda: a quick check of the latest business flash headlines. nike says sales rose more than expected as it had inventory that forced it to sell products at a discount. the sports france's global revenue was up 14% in the third quarter beating analyst expectations. lng prices could rebound to $104 dollars due to an increase in demand. china's expected to recover its demand after a drop in 2022. shares soared sword in extended trading after the company recorded its quarterly profit in two years, the income was $48 million, compared to last year's one $40 billion loss.

it felt the $2.3 billion, but still beat analyst estimates. david: so, a lot of big movers and on this, three out of the four names make up 10% of the regional benchmark. nio, an interview with the cfo, good guidance from the company. going into the fed decision, some caution perhaps when you look at futures, u.s. futures might indicate the runway has been short. caution ahead of the crucial decision, has. haslinda: if you take a look at asian stocks in positive territory. but, bonds getting sold off on expectations. perhaps the fed will say tightening will continue. that is it from bloomberg markets asia. daybreak middle east is next. this is bloomberg. ♪ hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management.

what does it mean to be ever better? its your customers getting what they ordered when they expect it. discover how ryder ecommerce makes your customer's experience ever better.

it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management.

he'd have a rally. we're talking a lot of dividends. we're talking income. we'll show you what's happening in etfs like no one else. bloomberg etf iq monday on bloomberg. the following is a paid program. the opinions and views expressed do not reflect those of bloomberg l.p. , its affiliates or its employees.